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Strong smartphone sales boost hopes for Samsung’s turn-around

SEOUL (Reuters) – the Strong sales of Samsung Electronics’ Galaxy Note 10 smartphone series to reduce forecast profits to fall in the South Korean tech giant, raising hopes that the it is to get back on the right track after years of moribund sales.

FILE PHOTO: The logo of Samsung Electronics is seen at its office in Seoul, south korea, south africa, South Korea, July 4, 2017. REUTERS/Kim Hong-Ji/Photo File

Samsung, the world’s largest smartphone maker, is powering ahead, with the launch of a 5G phone, and $2,000 a foldable handsets, as it heats up the competition with AMERICAN rivals such as Apple and chinese smartphone Huawei [HWT.UL] next, a battery explosion caused a scandal in 2017, that will hurt sales.

Analysts have said the strategy may be paying off, as the company on Tuesday, is marked by a smaller-than-expected drop in third-quarter operating profit, saying: “at the time of the sale of the Note 10 and both at home and in Europe has been strong since the Sept. 23 to start with.

There are also early signs that the global memory chip business, a key driver of Samsung profits will stabilise next year after the prices have been eroded by a weaker global economy and slower spending, the key to data center customers.

With its foldable smartphones that are any of the other competitors have not yet been launched, and Samsung will most likely result in a high-end smartphone market, as it would be in the mass, is to produce a foldable smartphone next year,” said Song Myung-sup, analyst at HI Investment & Securities.

“A growing number of data center customers are ordering more memory chips, or it could be a slow down of the decline in prices,” Song added.

Samsung said it has sold more than a million of them in the 5G, Note 10 devices in South Korea, making it the company’s fastest-selling flagship model, the sales in Europe were strong.

The analysts of credit to Samsung, and the celebration of growth of the united states imposed sanctions on a Smartphone that would effectively bar U.S. firms to supply the Chinese manufacturer.

Huawei’s new high-end Level of 30 smartphones to be shipped to Europe this month, but the sanctions mean that the product is the lack of a fully licensed version of the original Google’s Android operating system, as well as mobile services including the google Play Store and popular apps such as Gmail, Youtube or Maps.

Like the Park, is a senior analyst with market tracker to Counterpoint Research, said Samsung was also on the Ascend are on the low end of the market in Europe, Latin america and north America.

Sales of Huawei’s Honor smartphones, which are mostly in the $180-$249 to the price band, and accounted for a large proportion of its sales outside of China, it had dropped significantly in March, Samsung in order to boost sales volumes in A series, according to Counterpoint.

A CHIP REPAIR?

However, Huawei’s woes are also a problem for Samsung, as the world’s largest semiconductor company by revenue, with a Chinese company to a large customer in its memory.

Some analysts are more cautious about the outlook for the global memory-chip business, which is still being troubled by the US-China trade conflict, and provides two-thirds of Samsung’s earnings.

Samsung’s profit is to settle in every quarter since the end of the year the holiday quarter of last year, and is expected to decline again in the current quarter and year-over-year.

Limited In a trading update ahead of full earnings later this month, and Samsung on Tuesday said its operating profit for the July-to-September quarter, probably, do not tumble dry 56% to 7.7 trillion won ($6.44 billion), slightly better than the 7.1 billion won forecast by Refinitiv SmartEstimate. It is also marked by a revenue decline of 5.3% to reach an annual 62 trillion won.

“With the strong sales of smartphones is limited to the resolution of the Samsung to problems,” said Park Sung-soon, an analyst at Cape Investment & Securities. “Data center customers, as a key driver of the memory-chip business, pursuing a conservative investment for the time being, is not particularly heartening news for Samsung.”

Shares in Samsung were up about 1.5%, just slightly ahead of a 0.8% rise in the broader market in afternoon trading.

Reporting by Ju-min Park and Heekyong Yang; Editing by Jane Wardell

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